Most of us skip reading the terms of our mortgage. However, as more families take on home loans, there could be some difficulty paying home loans even though total household debt has decreased: at MAS in Singapore it is important to understand how hidden fees can affect our bank accounts.

Depending on the additional services you want, such as early repayment or using a locker for a spare set of keys, you may have to pay an additional hundreds for your loan. Below we’ve listed some of the top fees to consider when considering a mortgage.

Late payment fees

Most mortgage lenders will charge you an additional fee if you fail to make the mortgage payment on time. This is to deter you from making late payments and can cost an additional $ 80 for the transaction.

In addition, you could be fined more than 5 percent for overdue payments. To avoid this, it’s a good idea to set up a direct deposit that will make the payments when you get them from work.

Early repayment fees

If you’re one of the lucky few who saved enough money to prepay your home loan, you might be billed anywhere from $ 100 to $ 1,000. Also, banks require their lenders to pay at least $ 10,000 so they don’t lose out on potential interest rates.

That said, if you want to repay the remaining portion of your home loan, you could be charged an additional hundreds to repay it before the scheduled date.

In some cases, e.g. For example, if the fee you paid is more than your interest charge for the remainder of the loan, it may make more financial sense to withhold repayment of your loan.

ALSO READ: Banks Vs Mortgage Brokers: Which One Should I Use to Refinance My Singapore Home Loan?

Document retrieval fees

Banks often charge fees for general services such as making copies of documents. For example, to receive a retrieved copy of your signed contract from HSBC, you would have to pay $ 32 excluding sales tax.

Your home valuation reports, on the other hand, are $ 50 per report. This means that if you need the documents to take out another loan or to rent out your property, you should consider the additional costs your home lender will charge you.

Locker fees

If you want to keep an extra set of keys for your home in a small safe at your bank, you will have to pay an additional fee. Small storage units are typically rented for $ 160 to $ 321 annually.

However, there are more expensive services like Vault 268 that charge S $ 888 per year to rent a small box. To save on these costs, you may want to keep an extra copy of your home key with a family member.

Comparison of costs for a small safe

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Title Deed Retention Fees

In addition to keeping an additional pair of keys, some banks also store the title deed in your home. The main benefit of keeping the title deed is knowing that your information is safe. However, this can be quite expensive. For example, HSBC charges $ 428 for this service. If you’re more cost conscious, consider buying your own safe for less than $ 100

GIRO checks returned

Depositing your mortgage directly for monthly payments is a very convenient method of payment because you don’t have to worry about transferring the money and you can make the budget easier.

However, if you’ve been underpaid for a month or the transfer of funds has been delayed, you may receive a returned GIRO check. Banks will charge you around $ 10. So the best thing to do is to make sure that you have enough money in your account.

Choose the best mortgage to lower monthly payments and additional fees

Sometimes you could miss your monthly payments or receive a GIRO check. Or, you may need a home valuation to get a loan to finance a destination. Either way, you should make sure that you compare home loans before choosing one so that you are paying the lowest possible total overall.

ALSO READ: Best Mortgage Insurance in Singapore (2021)

Try to look beyond the listed prices and watch out for the hidden fees like late payment and document preparation fees. Knowing the fees in advance can help you avoid situations where there may be additional charges on your mortgage loan.

This article was first published in ValueChampion.